The administrative and civil settlement agreements also resolve all US Drug Enforcement Administration (DEA) claims related to the company’s controls against the diversion of controlled substances. Without admitting any wrongdoing, Cardinal Health has also agreed to pay a $34 million settlement payment, an amount the company fully reserved during fiscal 2008.
Cardinal Health has invested more than $20 million to enhance its controls across its network to prevent the diversion of controlled substances and has worked diligently with the DEA to resolve the suspensions.
In addition, to strengthen its overall compliance practices, the company hired former acting deputy US attorney general Craig Morford to an expanded role as its chief compliance officer, reporting directly to Kerry Clark, chairman and CEO of Cardinal Health, and to the audit committee of the company’s board of directors. Mr Morford is responsible for regulatory, environmental health and safety compliance, as well as ethics and enterprise risk management.
Cardinal Health is currently replenishing its controlled substance inventories in its Auburn, Lakeland and Swedesboro facilities and will take a phased approach to restoring controlled substance shipments from each facility. The company expects to fully resume shipments of controlled substances from all three facilities by the end of November, 2008.
In addition, the company has lifted a voluntary suspension for its Stafford, Texas facility and resumed shipping controlled products to customers from that location.